What is Demat Account & Why is It Needed?

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What is Demat Account Why is It Needed?
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Open Demat Account
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What is Demat Account?

• Where investor can hold there Physical Share
  certificate, Exchange traded fund , Mutual Fund
  or other financial document in digital /
  Electronic formats. With help of Demat you can
  digitally secure your physical Certification into
  Demat form.
• Demat is known as Dematerialisation. Its process
  of Transfer share certification from Physical to
  Digital (Electronic form) format.

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Why Open Demat Account?

• Demat Account holds all your physical
  certificate in to Digital format. Its one type
  of your Bank account where you can save your
  certificate and other financial documents,
  Exchange traded funds in Electronics formats.
  When the shares and other securities are
  dematerialisation their account are kept and
  maintained in the Demat account of Depository
  Participants. DP is authorised by CDSL /NSDL to
  operate Demat Account.
• Understand How Does Demat Account Works
• There are three major parties in Demat
  Account
• Central Depository
• Depository Participant
• Investor or Demat account holder

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• Central Depository In India there are two
  Central Depository NSDL / CDSL
• NSDL (National Securities Depository Limited)
  managed by NSE
• CDSL (Central Depository Securities Limited)
  managed by BSE
• Depository Participant In India there are so
  many Depository Participant. Depository
  Participant work is provide linkage between
  Central Depository and Investor. DP could be a
  Broker , Bank or any Financial institution.
• Investor or Demat account holder Every Client
  has Unique client code or client ID. Its their
  identification number. Demat account holder use
  their Demat account with help of Depository
  Participant.
• Read more How Demat Account Works?

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Benefits of Demat Account?

• No Risk of Physical Damaged of Certificate
• Safer than paper-shares (earlier risks associated
  with physical certificates such as bad delivery,
  fake securities, delays, thefts etc. are mostly
  eliminated)
• Immediate transfer of securities
• Traders can work from anywhere (e.g. even from
  home) not required to visit broker office.
• Easy to maintain Physical Shares
• Reduced paperwork for transfer of securities
• Easy and convenient way to hold securities

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• Change in Address in one place and get updated in
  every companys registrar records
• No stamp duty on transfer of securities
• Elimination of risk by loss, theft, mutilation
  etc.
• Reduced transaction cost
• Even one share can be sold no minimum lot
  required to share certificate
• Transmission of securities is done by DP,
  eliminating the need for notifying companies.
• Automatic credit into demat account for shares
  arising out of bonus/split, consolidation/merger,
  etc.
• A single demat account can hold investments in
  both equity and debt instruments.

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CONTACT US
Address 28, General Bank Chamber
Opp Municipal Market
Above kotak Bank
C.G.Road ,Ahmedabad India
Gujarat 380009 Phone [phone]

Website www.investallign.in